CBD-infused Products Market Size, Share, Forecast, & Trends Analysis by Source (Hemp), Type (Edibles {Confectionery}, Oil & Extracts, Personal Care {Skincare}, Smoke & Vape Products, Supplements), Distribution Channel (Online) — Global Forecast to 2031

The CBD-infused Products Market was valued at $32.22 billion in 2023. This market is expected to reach $291.39 billion by 2031 from an estimated $44.94 billion in 2024, at a CAGR of 30.6% during the forecast period from 2024 to 2031.

CBD-infused Products Market Size & Forecast

The growth of this market is driven by the growing demand for cannabis, the increasing legalization of cannabis across various jurisdictions, and the rising popularity of cannabis-infused edibles. Additionally, the medicinal and therapeutic health benefits associated with cannabis-infused products further contribute to this upward trend. However, the high costs associated with cannabidiol (CBD) and stringent government regulations on cannabis in certain countries are anticipated to restrain the growth of this market.

Moreover, the increasing demand for cannabis in pet food, along with the rising popularity of cannabis-infused beverages, is expected to generate significant growth opportunities for market players. However, health risks related to the overconsumption of CBD pose a significant challenge in the market.

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CBD-infused Products Market Growth Drivers

Rising Demand and Increasing Legalization of Cannabis

Over the past two decades, substantial advancements have been made in the legalization and regulation of cannabis for both medical and recreational use globally. This shift has created a favorable legal environment that has significantly boosted demand for cannabis-infused products, especially those containing CBD (cannabidiol).

Cannabis remains the most widely cultivated, trafficked, and abused illicit drug worldwide. However, its acceptance for recreational and medicinal use has been steadily increasing. In 2018, Canada legalized cannabis for both purposes, and as of February 2024, 24 states, the District of Columbia, and two territories (Guam and the Northern Mariana Islands) permitted cannabis use for non-medical adult purposes. Legislative actions, ballot measures, and public opinion reflect this shift. A 2024 Pew Research Center survey indicates that 88% of U.S. adults believe marijuana should be legal for medical or recreational use, with 32% supporting legalization solely for medical purposes and 57% favoring legalization for both medical and recreational use.

As legalization expands both domestically and internationally, the market for CBD-infused products is projected to experience significant growth. The legal status of cannabis allows businesses to operate with greater freedom, promoting innovation and increasing product availability, which in turn drives consumer interest and demand for CBD products. Furthermore, the growing market highlights the need for robust regulations on cannabidiol (CBD) to enhance consumer safety.

Medicinal and Therapeutic Health Benefits Offered by Cannabis-infused Products

The medicinal use of cannabis is legal in certain countries, where marijuana is used primarily for stress and pain relief, as well as to stimulate appetite. Cannabidiol (CBD) is one of the key compounds found in the cannabis plant, known for its medicinal and therapeutic benefits without the psychoactive effects typically associated with marijuana.

The global surge in demand for CBD oil is primarily attributed to its potential to alleviate various ailments. CBD oil is recognized for its anti-inflammatory properties and its effectiveness in managing certain behavioral symptoms of Alzheimer's disease. Additionally, It is also utilized in managing the symptoms of epilepsy, anxiety, chronic pain, neuroprotection, anti-acne applications, cancer treatments, and mental health disorders.

Furthermore, an increasing number of spas are incorporating exclusive CBD-infused massages into their treatment offerings, enhancing the concept of holistic relaxation. These massages utilize CBD-infused topicals—such as lotions, balms, oils, and creams—allowing the compound to enter the bloodstream directly, resulting in immediate effects without the need for digestion.

As a result, the growing adoption of CBD for various health concerns is expected to raise awareness of cannabis applications, thereby driving the expansion of the CBD-infused products market.

CBD-infused Products Market Opportunities

Growing Demand for Cannabis in Pet Food

Pet owners are increasingly turning to CBD for its potential health benefits, including relief from anxiety, pain management, and treatment of conditions such as arthritis and digestive issues. Some studies indicate that CBD may help alleviate symptoms related to anxiety and stress in pets, contributing to the rising demand for these products.

A 2023 survey by PETS International and Yummypets, conducted across the U.S., Canada, France, and the U.K., revealed that 72% of pet owners are familiar with CBD pet products. Among the 944 pet owners surveyed, 16% have already tried CBD products for their pets, while 41% expressed interest in doing so. The most commonly purchased CBD pet products include oils (63%), chews (59%), biscuits (22%), sticks (12%), and paste (9%).

Furthermore, according to the American Pet Products Association, U.S. pet owners spent USD 147.0 billion on their pets in 2023, an increase of more than USD 10 billion from 2022. This consumer willingness to adopt cannabis-based pet foods highlights significant opportunities for market players in this space.

Rising Demand for Cannabis-infused Beverages

Cannabis-infused beverages, available in various shapes, sizes, and potencies, are experiencing significant growth. This trend reflects the increasing incorporation of cannabis into drinks, resulting in a diverse array of products that cater to different consumer preferences. Brands like CANN, Zentopia, and TRIP offer unique sparkling mixed drinks designed to promote relaxation and well-being.

The rising popularity of health and wellness beverages is expected to further drive market growth. Additionally, alcohol manufacturers are making substantial investments in cannabis-infused products. For example, Heineken has introduced Hi-Fi Hops in California, a beer infused with THC and CBD that features zero carbohydrates and calories.

Moreover, the sports nutrition sector, traditionally focused on muscle building, fat burning, and energy enhancement, is now considering CBD as a potential pre-workout and recovery aid. This could help consumers achieve their fitness goals more effectively. Therefore, the increasing demand for cannabis-infused beverages presents significant opportunities for manufacturers in this market during the forecast period.

CBD-infused Products Market Analysis: Key Findings

The Hemp Segment to Dominate the CBD-infused Products Market in 2024

Based on source, the CBD-infused products market is segmented into hemp and marijuana. In 2024, the hemp segment is expected to account for a larger share of 76.3% of the CBD-infused products market. This large market share is attributed to the growing demand for hemp-sourced CBD-infused products, primarily due to their lower THC concentrations, which reduce or eliminate psychoactive effects and make them more suitable for various medical applications. In addition, the anti-inflammatory, anti-aging, and antioxidant properties of CBD derived from hemp contribute significantly to the segment’s significant share.

Furthermore, the hemp segment is estimated to register a higher CAGR of 32.7% during the forecast period. This growth is driven by hemp’s expanding applications in personal care products, including cosmetics and skincare. Increasing consumer awareness and innovative uses in health and wellness are expected to further boost the growth of this market.

The CBD Edibles Segment to Witness High Demand During the Forecast Period

Based on type, the CBD-infused products market is segmented into edibles, oil & extracts, personal care products, smoke & vape products, supplements, and other CBD products. In 2024, the edibles segment is expected to account for the largest share of 33.6% of the CBD-infused products market. This segment’s large market share is attributed to the growing popularity of recreational cannabis, the rising demand for cannabis-infused foods—such as those containing THC and CBD—and the increasing use of CBD in confectionery and baked goods. Additionally, cannabis consumers are actively seeking alternatives to smoking, further driving demand in this segment.

Moreover, the edibles segment is estimated to register the highest CAGR of 35.2% during the forecast period. This segment's rapid growth is driven by the increasing social acceptance of CBD-infused edibles and the growing use of CBD edibles to treat psychiatric disorders, neurological disorders, and cancer, as well as pain control.

The Offline Stores Segment to Dominate the CBD-infused Products Market in 2024

Based on distribution channel, the CBD-infused products market is segmented into offline stores and online stores. In 2024, the offline stores segment is expected to account for a larger share of the CBD-infused products market. This segment's large market share is primarily driven by consumers' perception of obtaining authentic, high-quality products, the enhanced shopping experience provided by these channels, and the preference for in-person shopping experiences.

However, the online store segment is estimated to register the highest CAGR during the forecast period. This growth is fueled by consumers' increasing preference for online shopping, the convenience provided by digital platforms, and the availability of greater discounts compared to physical stores. Additionally, the rising demand for personalized experiences and the rapid expansion of CBD-infused products on e-commerce platforms are contributing factors.

Geographical Analysis

North America Dominates the CBD-infused Products Market

Based on geography, the CBD-infused Products market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 59.5% of the CBD-infused Products market, followed by Europe and Asia-Pacific. North America's CBD-infused products market is estimated to be worth USD 26.76 billion in 2024. North America's large market share is attributed to several key factors, including easy accessibility, technological advancements in the production and processing of CBD-infused products, and a large consumer base. Changing perceptions of CBD consumption for both medical and recreational purposes, increasing awareness of its various medical benefits, and rising consumer spending on CBD-infused products also contribute to this large market share.

Furthermore, this region is estimated to register the highest CAGR of 34.3% during the forecast period. This growth is driven by rising health and wellness trends, increased R&D expenditures on CBD, growing investments from leading companies, and the expansion of online shopping.

CBD-infused Products Market: Key Companies

This report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the CBD-infused Products market are Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), Maricann Inc. (Canada), Tilray Brands, Inc. (Canada), GW Pharmaceuticals plc (U.K.), MediPharm Labs Corp. (Canada), Cresco Labs, Inc. (U.S.), Tauriga Sciences, Inc. (U.S.), MariMed Inc. (U.S.), CV Sciences, Inc. (U.S.), Kona Gold Beverage, Inc. (U.S.), Bhang Inc. (U.S.), DT Brands & Co (N.I.) Ltd. (U.S.), Irwin Naturals Inc. (U.S.), Hempstrol Pharma (India), Kapu Maku LLC. (U.S.), Medterra CBD, LLC. (U.S.), Endoca LLC (U.S.), and Elixinol Global Limited (Australia).

CBD-infused Products Industry Overview: Latest Developments from Key Industry Players

• In December 2023, Rare Cannabinoid Company (U.S.) launched THC+THV uplift gummies, featuring a unique blend of cannabinoids aimed at delivering uplifting effects and appetite control.
• In May 2022, Curaleaf Holdings, Inc. (U.S.) introduced the Select CBD Bites product range under the Select CBD brand, addressing the increasing consumer demand for convenient and effective CBD-infused edibles.
• In April 2021, Canopy Growth Corporation (Canada) partnered with Southern Glazer’s Wine & Spirits to launch Quatreau, Canopy’s first line of CBD-infused beverages in the U.S. market.

CBD-infused Products Market Research Summary

Key questions answered in the CBD-infused products market report: